First thing you need to do is get a set of the VOLVO service manuals on the Diesel engine. The books are GREAT !! There are four books you need to get.

1) TP30789/1 => Design and Function => Engine D24T Turbo Diesel 2) TP30571/1 =. Fault Tracing Repairs D24T 3) TP30571/1S => Fault Tracing Repairs Supplement => D24T 740/760 1983-1986 4) Tp31134/1 => Reconditioning Engine

These numbers are for the Turbo Diesel but Volvo has similair books for the ALL the engines and sub groups of the car.

The fuel solenoid is located on the front-top of the fuel pump just above the cluster of injection lines. When the ingition key is tunred to the RUN and/or START positions the solenoid is energized (12volts) to open the solenoid and allow fuel to flow to the pump plunger and thus to the nozzles. Check to see if you you have voltage at the solenoid when in the run position, then hold the solenoid while an assistant turns the key from the OFF position to the RUN position and you should feel the solenoid click open and shut.

Try loosening one or two of the injector lines at the cylinder head and crank the engine. You should get fuel at the cracked/loosened injection lines. If you get fuel the problem could be with the glow plug circuit not heating to assist during a cold start.